(a) Introduction: Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm. To find: Short-term liquidity ratios of seek enterprises.

Question

VII. Direction: Compute and interpret. The following comparative financial statements are provided by Avatar Industries. You were asked to compute the different financial ratios and provide your interpretations with regards to profitability, efficiency, liquidity and solvency of the company. Use the Answer Sheet template below to input your answer and solution. AVATAR INDUSTRIES AVATAR INDUSTRIES Comparative Statement of Financial Position For the years 2019 and 2018 Comparative Income Statement For the years 2019 and 2018 2019 2018 2019 2018 ASSETS Current Assets: Sales P200,000 P210,000 Cash & Cash Equivalent P65,000 P70,000 Sales Returns and Allowances 40,000 25,000 Accounts Receivable 40,000 35,000 Net Sales 160,000 185,000 Marketable Secuities 40,000 35,000 Cost of Goods Sold 100,000 115,625 Inventory 100,000 80,000 Gross Profit 60,000 69,375 Total Current Assets 220,000 200,000 160,000 P445,000 P380,000 245,000 Operating Expenses: Fixed Assets Selling Expenses 22,000 25,000 Total…

Answer 1

Question

Chapter 12, Problem 78E

To determine

(a)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To find:

Short-term liquidity ratios of seek enterprises.

To determine

(b)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To indicate:

Which ratio appears to be most appropriate for the organization and along with it indicate which information would you like to know to comment on the short-term liquidity ratio of the organization.

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VII. Direction: Compute and interpret. The following comparative financial statements are provided by Avatar Industries. You were asked to compute the different financial ratios and provide your interpretations with regards to profitability, efficiency, liquidity and solvency of the company. Use the Answer Sheet template below to input your answer and solution. AVATAR INDUSTRIES AVATAR INDUSTRIES Comparative Statement of Financial Position For the years 2019 and 2018 Comparative Income Statement For the years 2019 and 2018 2019 2018 2019 2018 ASSETS Current Assets: Sales P200,000 P210,000 Cash & Cash Equivalent P65,000 P70,000 Sales Returns and Allowances 40,000 25,000 Accounts Receivable 40,000 35,000 Net Sales 160,000 185,000 Marketable Secuities 40,000 35,000 Cost of Goods Sold 100,000 115,625 Inventory 100,000 80,000 Gross Profit 60,000 69,375 Total Current Assets 220,000 200,000 160,000 P445,000 P380,000 245,000 Operating Expenses: Fixed Assets Selling Expenses 22,000 25,000 Total…

Question 1 Mabel is a potter and sells her pottery at stalls that she rents in four tourist information centres across the south of England. Extracts from her financial statements for the years ended 31 December 2021 and 2020 are shown below. Statement of profit or loss for the year ended 31 December: 2021 28,900 |(16,500) 12,400 (3,800) 8,600 |(4,000) 4,600 2020 Revenue 27,200 (14,000) 13,200 (3,600) 9,600 Cost of sales Gross profit Operating expenses Operating profit Non-operating expenses Net profit 9,600 Statement of financial position as at 31 December: 2021 Non-current assets Current assets Total assets 22,660 4,360 27,020 2020 20,920 3,750 24,670 Equity Non-current liabilities Current liabilities Equity and liabilities 20,940 3,000 3,080 27,020 16,340 3,500 4,830 24,670 The following information is also relevant: In July 2021 the rent on one of Mabel's stalls was increased significantly for the third time in three years so she decided not to renew the annual contract. She sold…

VII. Direction: Compute and interpret. The following comparative financial statements are provided by Avatar Industries. You were asked to compute the different financial ratios and provide your interpretations with regards to profitability, efficiency, liquidity and solvency of the company. Use the Answer Sheet template below to input your answer and solution. AVATAR INDUSTRIES AVATAR INDUSTRIES Comparative Statement of Financial Position For the years 2019 and 2018 Comparative Income Statement For the years 2019 and 2018 2019 2018 2019 2018 ASSETS Current Assets: Sales P200,000 P210,000 Cash & Cash Equivalent P65,000 P70,000 Sales Returns and Allowances 40,000 25,000 Accounts Receivable 40,000 35,000 Net Sales 160,000 185,000 Marketable Securities 40,000 35,000 Cost of Goods Sold 100,000 115,625 Inventory 100,000 80,000 Gross Profit 60,000 69,375 Total Current Assets 245,000 220,000 Operating Expenses: Fixed Assets 200,000 160,000 Selling Expenses 22,000 25,000 Total Assets P445,000…

Answer 2

Question

Chapter 12, Problem 78E

To determine

(a)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To find:

Short-term liquidity ratios of seek enterprises.

To determine

(b)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To indicate:

Which ratio appears to be most appropriate for the organization and along with it indicate which information would you like to know to comment on the short-term liquidity ratio of the organization.

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Answer 3

Question

Chapter 12, Problem 78E

To determine

(a)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To find:

Short-term liquidity ratios of seek enterprises.

To determine

(b)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To indicate:

Which ratio appears to be most appropriate for the organization and along with it indicate which information would you like to know to comment on the short-term liquidity ratio of the organization.

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Answer 4

Question

Chapter 12, Problem 78E

To determine

(a)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To find:

Short-term liquidity ratios of seek enterprises.

To determine

(b)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To indicate:

Which ratio appears to be most appropriate for the organization and along with it indicate which information would you like to know to comment on the short-term liquidity ratio of the organization.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 78E

To determine

(a)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To find:

Short-term liquidity ratios of seek enterprises.

To determine

(b)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To indicate:

Which ratio appears to be most appropriate for the organization and along with it indicate which information would you like to know to comment on the short-term liquidity ratio of the organization.

Answer 6

Chapter 12, Problem 78E

To determine

(a)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To find:

Short-term liquidity ratios of seek enterprises.

Answer 7

Chapter 12, Problem 78E

To determine

(a)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To find:

Short-term liquidity ratios of seek enterprises.

Answer 8

To determine

(b)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To indicate:

Which ratio appears to be most appropriate for the organization and along with it indicate which information would you like to know to comment on the short-term liquidity ratio of the organization.

Answer 9

To determine

(b)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To indicate:

Which ratio appears to be most appropriate for the organization and along with it indicate which information would you like to know to comment on the short-term liquidity ratio of the organization.

Answer 10

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Ch. 12 - Describe how some of the primary groups of users...Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

(a) Introduction: Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm. To find: Short-term liquidity ratios of seek enterprises.

Solution Summary: The author explains the short-term liquidity ratios of seek enterprises.

(a)

Introduction:

Short-term liquidity ratio are the ratios that tell about the short-term financial position of the firm.

To find:

Short-term liquidity ratios of seek enterprises.

Chapter 12 Solutions